Foreign Company Registration in Qatar

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Qatar is recognized as one
of the fastest growing economies in the world. GDP per capita stands at USD
63,505.81. The new liberalized policy of Qatar opens the door to foreign
investors, allowing them to open 100% of foreign-owned companies in some sectors
including: education, agriculture, health, tourism and many others.

Successful development strategy, insurance, investment incentives, policies, banking services, infrastructure, social & political stability help to create an outstanding business environment to set-up a business in Qatar. These types of factors work as stimuli to set up a business in Qatar or Qatar company registry.

Type of Company Formation in Qatar

Ministry of Business and Trade determine the type of company that a foreigner can establish in Qatar. They will examine each application of business registration case by case before registering any company. There are various types of company that a business entrepreneur could consider forming in Qatar such as: –

Limited Liability Company

This is one of the most
picked business entities in Qatar. It’s a typically a joint venture where one
or more local Qatari citizen should hold a minimum 51% shares. Companies
holding 51% share or more are permitted to conduct business in all sector.
According to the government requirement, it takes around QR. 10 Million to
Setup LLC Company.

Representative Trade Offices

According to the Ministry of Business & Trade (MBT), foreign company or firms can open a representative trade office without having any Qatari partner. However, the representation office can obtain a commercial registration and recruit staff on its name, it can only conduct as a “Shop Window” for promoting the foreign company, its product or service.

Foreign Company Branch Registration

According to the Foreign
Investment Law (FIL), a foreign company can register its branch in Qatar
(applicable terms and conditions). The branches of any company or business
organization can be registered only if the company has contacts to carry out a
specific project that facilitates the performance of the public service and the
unit. This type of company cannot conduct activities that are not registered in
their contract. However, the branch may be fully taxed unless the foreign
investment department grant a special exemption.

Joint Partnership Company

This is a type of company
that is comprised of two or more person. In a joint partnership, company
foreigner can have only 49% shares & Qatari partners should have at least
51% shares. A joint venture company usually consists of joint partners and
trustee partners. The joint partners will bear the unlimited liabilities of the
company liabilities, and the trusty partners will take the liabilities of the
company.

Besides all the above-mention company, many other companies can be registered in Qatar. Such as: –

Holding Company

Limited Share Partnership Company

Public Shareholding Company and

Joint Venture

Business
Setup in Qatar

Qatar is one of the top-ranked economies in the world. It welcomes foreign investors for setting up their business in Qatar. All the foreigners who decide to set up business in Qatar should have sound knowledge about the economic laws and local business setup process in the country. People who are looking for commercial business registration needs be aware of the categories of business. In Qatar, the Limited Liability Company is one of the common business categories for foreigners.

Finding a Qatari Partner

If you want to set up business in Qatar, the support of Qatari partners is necessary to obtain the fundamental license for the company. Various types of business require local partners to complete the business/company registration process. However, if you need any Qatari partners, we can provide you with an ideal individual.

Commercial Residence (CR)

The Commercial Resident
(CR) is the 1st piece of document that you need to obtain. The Ministry of
Economy and Commerce issues this document. CR is a piece of documents that
states– This legal entity with name X is owned by these persons or
shareholders. However, this is one of the documents that are very quickest to
get. To obtain CR, you need to do the followings.

Trade Name: it is essential to obtain a trade name
for your business. The name should be unique and it should not match with
others. Remember, if the trade name does not have any Arabic meaning you need
to pay extra QAR of 1000.

Articles of Association Approval: Once you obtain your
company trade name, you now need to get Articles of Association. The article of
association FORM is available with the Ministry of justice. You need to fill up
the FORM with appropriate information of shareholders, their rights, ownership,
etc. After filling up the FORM submit it to the Ministry of Justice. The
article of Association will be approved if everything is everything is done
maintaining rules and regulation. The whole process can be done in 1 working
day with QAR 1500 as a registration fee.

Issue the CR: Once you obtain the trade name and AoA approval, you can now submit them for your enterprise to be issued a Commercial Resident. At the stage of issuing CR, you will be asked about the activities of your business. Depending on the business activities you will be charged between QAR 1500 to 7000 per year.

Remember, CR is valid for one year and you need to renew it every year. The renewal process is straightforward as you can renew it via online. The table below shows things you can and can’t do with CR.

Things You Can Do With CR

Things You Cannot Do With CR

Corporate bank account
opening

You cannot get office
space to incorporate your business

Invoice and also can
accept payment

You cannot hire any
employee from foreign nation

Buy own and buy assets
under your company name

You cannot issue any
resident permit

Trade License Qatar

You need to obtain a Trade License after receiving your CR. Trade license is essential in order to have an office space and to conduct business activities. Trade license is approved by the Ministry of Economy and Commerce.

Obtaining this license is one of the hardest parts of company registration. In order to obtain this license, you need to fill out the requisite application that are available within MEC website and submit it the MEC with the following documents –

ID card copy (shareholders and
directors)

One copy of CR

Photography of your office
building from outside (photo must show the address information)

Copy of Article of Association
(AoA)

Building completion certificate
copy along with the ID card of building owner.

Once you submit all the required paper, you will get a confirmation message. The representative from MEC will visit your office for inspecting purpose. The inspector will take around one to four weeks to visit the office.

Once the inspection is completed successfully, you will get a message saying your trade license is ready to collect. To obtain a trade license, you need to pay fees around QAR 520 (includes inspecting fees).

Computer Card as Registration Steps

Computer card is necessary to hire an employee under your company. If you don’t have a computer card, you cannot issue anyone with a residence permit. Note: The Immigration Department can only issue the computer card. In order to apply for this card, you will require an official company stamp. The printing companies requires Trade license, CR and ID of shareholders for making an official company stamp. (It takes just one day to make the stamp).

However, to apply for the computer card, you need the following documents: Application form of computer card.

Copy of the CR

Trade license copy

Copies of ID card of all the
shareholders.

All the copies individual who will
be on the computer card

Taxation
of Register Companies in Qatar

The law of Qatar state that all the companies that are owned by the foreign nation need to pay tax to run their business in Qatar. Companies that are owned by locals need not need to pay tax. However, all foreign partners need to pay tax on their shares.

In Qatar, the company that exceeds profits amount of QR 100000 are subjected to submit a financial statement that is certified by a registered accountant in Qatar. Depending on the type of business and profits the tax rate may vary from 10 percent to 35 percent.

Qatar is one of the
top-ranked economies in the world; this is why most of the foreign investors
want to set up business in Qatar. The government of Qatar allowed a foreigner
to set up various types of business which include – Limited Liability Company,
Joint venture, Representative Office any many other.

Many foreign investors want
to set up business in Qatar but do know the complete procedures of business
registration. Do no Worry! S&F Consulting Firm is always there to help you
out with any kind of business registration in Qatar.

Company Registration Ins and Outs

How much it costs for reserving a trade name?

Booking trade name for 3 days is free but if you book it for period od three month it will cost around QR-1000.

What is the procedure for reserving a trade name?

The trade name can be reserved through the website ­-www.moci.gov.qa (most easy way)